Business, 03.03.2020 00:31 damiangomzzz903

Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:

Expected Production Direct Labor-Hours Per Unit Total Direct Labor-Hours
Product F9 300 6.0 1,800
Product U4 600 3.0 1,800
Total direct labor-hours 3,600
The direct labor rate is $27.80 per DLH. The direct materials cost per unit is $271.90 for Product F9 and $272.20 for Product U4.

The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:

Estimated Expected Activity
Activity Cost Pools Activity Measures Overhead Cost Product F9 Product U4 Total
Labor-related DLHs $ 38,988 1,800 1,800 3,600
Production orders orders 61,910 400 600 1,000
Order size MHs 126,150 3,800 3,700 7,500
$ 227,048
If the company allocates all of its overhead based on direct labor-hours using its traditional costing method, the overhead assigned to each unit of Product U4 would be closest to: (Round your intermediate calculations to 2 decimal places.)

a.$185.73 per unit

b.$189.21 per unit

c.$32.49 per unit

d.$50.46 per unit

Answers: 3

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Chhom, Inc., manufactures and sells two products: Product F9 and Product U4. Data concerning the exp...

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